4/09 ANDY HOFFMAN (CryptoGoldCentral.com): Strong Hands, And BRhodium

Not that he coined the term – as no doubt, it was first uttered centuries ago. However, Adam Meister unquestionably did so in Bitcoin – which anyone who has held it for any amount of time, understands completely…as unquestionably, cryptocurrency is the most volatile - and at times, extremely illiquid - asset class of all time.

It won’t be this way forever – as after all, it’s barely a decade old; and clearly, its volatility has already declined relative to the past. However, for now, “Strong Hands” is a powerful, and necessary mantra to abide by, if you seek to invest in the space.

Personally, Strong Hands has been something I’ve been forced to utilize throughout my investment career. It started with junior mining stocks – followed by bullion, and cryptocurrency. In Bitcoin’s case, I became a well-known figure “Strong Handing” its rise from my buy point in the first quarter of 2016 until I sold it in November 2018. The gains were extraordinary; though, like everyone else, I wish I sold at $20,000 - when everyone believed a new era was upon us, and it could only go higher.

When I did sell, it was not because I didn’t believe in Bitcoin’s future, but for publicly-documented portfolio management reasons. As I explained ad nauseum, at my age, and projected financial needs, it would have been crazy to risk such a huge percentage of my net worth in an asst so volatile, it could just as easily cause financial strain as nirvana. I mean, what if Tone Vays was right about $1,300?

The fact is, my Bitcoin Strong Hands served me well – as aside from the investment gains, it enabled me to build a cryptocurrency business. So, for the first time, I am my own boss. And NO ONE is more bullish on crypto’s outlook than me!

Additionally, I felt comfortable selling my Bitcoin due to my large, and still growing investment in BRhodium. Altcoins are not for everyone; and at CGC, I spent nearly all my time recommending Bitcoin, and Bitcoin only. However, given my background in the marketing of small stocks, it was only a matter of time before I sought new opportunities in the space - particularly, as at this point, there is little value to add in Bitcoin.

In BRhodium’s case, it was a FREE Bitcoin airdrop, at a time when I was still fully invested in BTC. I worked extremely hard to spread the word to clients, and helped many actually claim it - just as I will with MWC, whose FREE Bitcoin airdrop registration commences April 20th.

As a large BRhodium (XRC) holder, I followed the story as closely as I have always followed big holdings. Fortunately, the anonymous dev team is extremely accessible, English speaking, and talented. So, as time passed, I was enabled an intimate understanding of not only their goals, but motivations and moral character.

Even I have been astonished at how much they have accomplished, with most of the truly difficult work coming amidst a horrific crypto bear market; during which, new resources – financially, and otherwise – were all but absent. Let alone, the growing pains of listing on exchanges during the lowest point of the crypto bear – when simultaneously, the code’s final bugs were ironed out, before last week’s code release.

Strong Hands have been necessary since exchange trading launched in January – but with each passing day, the XRC investment community, and mining network, has grown incrementally stronger. To think, it wasn’t long ago when the mining pool was in constant need of re-adjustment, with wildly fluctuating hash rates and uncertainty where new mining interest would come from. Yet, despite significantly higher difficulty adjustments, hash rate has hovered consistently around its all-time high for several months now.

As for the price, XRC Strong Hands have been necessary due to periods of illiquidity that naturally occur in a nascent asset with a very tight float – let alone, amidst a crypto bear market. I mean, it was just two months ago, when Bitcoin was $3,300, compared to nearly $5,300 today.

However, the fact is, that this illiquidity is one of its best “features”; as its principal cause is the fact that such a high percentage - by my estimate, nearly 90%; is tied up in the ultimate Strong Hands - whale investors who received the maximum 5,000 XRC in the airdrop; purchased huge positions from non-believing holders during the extensive periods when XRC sold below $5; or both.

This is why we have seen the price wildly fluctuate for months. However, if you look at the volume charts – on Bisq, where the majority of non-OTC trading occurred before the mid-January exchanges launches; or p2pb2p – where the majority occurs now (though the first few weeks should be ignored, as exchange bots were engaging in wash trading); you’ll see that the price surges have had FAR more volume than the declines.

To wit, the decline in the past 36 hours or so from the high .003s to the high .002s on about 1,000 XRC of trading – compared to the 3,000 that traded when it rose from .002 to .004 in a similar timespan two weeks ago. Not to mention, the one-day surge from .004 to .006 – when in a few minutes time, someone purchased 20 BTC worth. Consequently, the whales own far more of the float than ever before; and since there are no XRC “traders,” all trades - especially at today’s low prices (a $12 million market cap) - are simply moving into the hands of long-term “BRODLers.”

In BRhodium’s case, it is the ONLY crypto paying a regular in-kind dividend – at least it will be, until MWC is launched this summer, with this specific feature. That is, the 257,000 XRC that went unclaimed in last year’s airdrop were locked in an escrow wallet, to be released to wallets experiencing zero negative transactions at a rate of 8,000 per quarter, for the next 32 quarters.

The first dividend period just ended – with the dividend, to be distributed later this week, yielding 1.43%, which annualizes to 5.7%. And the beauty of the Strong Hands dividend, is that it fosters a “competition” of sorts, to hold as long as possible; as the more people who sell, the more dividends that are available for those who don’t. Not to mention, the magic of compound interest - alive and well in BRhodium, but non-existent in all other cryptos.

For these reasons, I believe BRhodium would have succeeded if the crypto bear market continued – which is why I have been aggressively acquiring it since MainNet launch on October 25th; i.e., just before I sold my Bitcoin. With the added bonus of a burgeoning crypto bull, I have no doubt it will become a go-to store-of-value altcoin in time…particularly due to the tightly held nature of its float, and the large financial interests supporting it. So, while it seems at times like “Strong Hands” are needed in XRC, I assure you the biggest risks are in the rear view mirror – as said headwinds, are increasingly turning into tailwinds!

BRhodium currently trades on p2pbp2.io, Trade Satoshi, and Bisq. If you have questions about anything XRC-related, including OTC trading, please email me at [email protected], or DM/PM me on Twitter or Discord.